Supply Chain Innovation

Nike, Inc.

Nike has been evolving its mindset and its field operations away from a compliance auditing model towards a coaching model for factory partners focusing on continuing improvement in sustainability. We are looking forward to continued partnership with FLA in the development of industry-wide tools to build sustainable supply chains in the footwear and apparel industry.

- Nike, Inc.

Supply Chain Innovation

The Jo-In Project was a collaborative effort of six leading international labor rights and code implementation organizations, including the Clean Clothes Campaign (CCC), Ethical Trading Initiative (ETI), Fair Labor Association (FLA), Fair Wear Foundation (FWF), Social Accountability International (SAI), and Worker Rights Consortium (WRC). The Jo-In project focused on enhancing collaboration among these organizations to identify best practices in the field of code implementation.

All Nike footwear, apparel and equipment. Nike, Inc.'s compliance program is accredited by FLA.

From the Nike, Inc. website: Our greatest responsibility as a global company is to play a role in bringing about positive, systemic change for workers within our supply chain and in the industry. We're looking end-to-end, from the first phase of our product creation process to the impacts of our decisions on the lives of workers in the factories that bring our product to life.

The Fair Labor Association (FLA) expects its affiliates to account for the impact of business decisions on workers in their global supply chains. The FLA recognizes that during the COVID-19 pandemic, companies of all sizes face challenges and difficult choices that will affect many – including the most vulnerable workers.

Issues: During a 2009 factory visit, FLA assessors found that foreign staff at a factory producing apparel for adidas Group and Nike, Inc. lacked required legal work permits. In addition, some printing department workers, who neither asked to leave nor signed a withdrawal notice, were compelled to leave the union without their consent. The union leader said most printing department workers did not wish to be involved in the union; therefore, they decided to drop these workers from the roster and stopped collecting their dues.

Issues: During a 2009 independent external monitoring visit, FLA assessors found that factory management did not prevent verbal harassment of workers at a factory producing garments for H&M and Nike. The factory employed 288 workers.

Issues: A 2009 follow-up visit by FLA assessor revealed that a factory producing sports shoes for Nike in India had set an annual limit for bonus qualification at Rs. 3,500. This was well below the legal amount of Rs. 10,000. The factory employed 1,563 people.

Solutions: FLA assessors verified that the bonus qualification was raised to Rs. 10,000 (approximately $200), and a notice was posted to inform workers of the change.

The Fair Labor Association (FLA) expects its affiliates to account for the impact of business decisions on workers in their global supply chains. The FLA recognizes that during the COVID-19 pandemic, companies of all sizes face challenges and difficult choices that will affect many – including the most vulnerable workers.
Based on the extraordinary circumstances of COVID-19 and with the well-being of workers as a priority, the FLA on April 6 issued a series of recommendations based on the application of FLA principles during the pandemic. The FLA’s Principles of Fair Labor...

Twenty-one major U.S., Canadian, European, and Hong Kong brands joined to call on Cambodia's prime minister to respond to concerns raised through multiple channels with government leaders.
In a May 2, 2019 letter the companies expressed their growing concern regarding the labor and human rights situation in Cambodia, which threatens trade preferences for Cambodia. The European Union’s February 11 decision to review Cambodia’s Everything But Arms benefits, and recently introduced legislation in the U.S. Congress to review Cambodia’s Generalized System of Preferences...

WASHINGTON – The Fair Labor Association (FLA) announced today that its board of directors voted to re-accredit Nike’s social compliance program, the third FLA accreditation for the company. Nike, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities is a multinational company headquartered near Beaverton, Ore., and an original FLA member company.
“Nike for nearly 20 years has demonstrated a steadfast commitment to improving its labor...

(WASHINGTON, D.C.) – October 23, 2018 – Representatives from major apparel and footwear brands, led by the American Apparel & Footwear Association (AAFA) and the Fair Labor Association (FLA), met on October 19 with senior Cambodian government officials to discuss the current state of worker rights, and opportunities for enhanced collaboration in upholding worker rights throughout the Cambodian garment, footwear, and travel goods sector. They called on the government to drop criminal charges in the cases of several labor leaders, charges that have been pending for years and are...

(WASHINGTON, D.C.) – October 22, 2018 – Today, 123 apparel and footwear companies signed the new “AAFA/FLA Apparel & Footwear Industry Commitment to Responsible Recruitment,” reflecting the industry’s commitment to the fair treatment of workers in the global apparel, footwear, and travel goods supply chain.
Developed in conjunction with the American Apparel & Footwear Association and the Fair Labor Association, the Commitment is a proactive industry effort to address potential forced labor risks for migrant workers in the global supply chain. Each...

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Nike, an original member of the Fair Labor Association, was re-accredited for the third time in 2019 following an extensive review of its social compliance program and supply chain labor practices. Nike’s program was first accredited in 1999 and received its last re-accreditation in 2008.

In February 2018, affiliated Participating Companies Nike Inc. and Under Armour Inc. requested that the Fair Labor Association\ conduct a safeguards investigation at the factory New Holland Apparel de Nicaragua, S.A. The brands requested that the FLA engage an independent expert to investigate allegations of violations of freedom of association -- particularly with regard to the dismissal of a union leader who had employment protection -- as well as of other labor standards.

On August 2, 2016, the Fair Labor Association (FLA) instituted a Third Party Complaint investigation with respect to the factory C.S.A. Guatemala Sociedad Anónima located in Guatemala City. The complaint, filed by the Ad Hoc Committee of United Workers of the Enterprise C.S.A. Guatemala Sociedad Anónima, alleged a range of worker rights violations, centering on freedom of association. The allegations appeared to violate a number of Compliance Benchmarks associated with FLA Code Elements on Freedom of Association, Harassment or Abuse, Hours of Work, and Compensation.

During the week of July 4, 2016, the FLA conducted a comprehensive assessment of working conditions at the factory complex Hansae Vietnam Co. Ltd, located in Ho Chi Minh City. The factories in the Hansae complex produce a range of apparel products for the international market. At the time of the assessment, Hansae employed approximately 9,000 workers in 12 manufacturing factories or workshops.

On January 21, 2016, the Fair Labor Association (FLA) accepted for review a Third Party Complaint filed by Cornell University regarding the factory Hansae Vietnam, located in Ho Chi Minh City, Vietnam. The complaint called for an investigation of issues related to payment of productivity bonuses that resulted in strikes in October and November 2015 in Hansae’s Workshop 5. FLA-affiliated company Nike is a buyer from the factory.